The Cost Of Medicare: Premiums, Deductibles, And Copays
Posted on: 4 January 2023
Are you stuck in the insurance loop, uncertain how much money you can expect to spend on healthcare? Are you still uncertain about what kinds of coverage you qualify for?
You aren't alone. Many individuals struggle to understand how Medicare works and how much it costs.
The first step in understanding your Medicare options is knowing the basics. These are some of the terms you need to know before you apply for insurance of any kind.
Medicare Premiums
Medicare premiums are monthly fees you pay to have coverage at all. Different plans and different levels of coverage will have different premiums, and the amount you pay depends on your specific plan.
Your premium is the bill you get each month. With Medicare, you'll typically pay a premium for Part A and Part B, and then additional premiums if you decide to add supplemental coverage.
Medicare Deductibles
A Medicare deductible is a set amount that you need to pay out-of-pocket before Medicare begins to cover your medical costs.
Different plans and levels may have different deductibles, so you should check with your plan provider for further details about what yours would cost.
For example, if you had a $250 deductible, that means you would need to pay the first $250 of your medical costs before Medicare begins chipping in.
Medicare Copays
A copay is a fixed amount you pay for a specific healthcare service, like a doctor's visit or prescription drug. The amount you pay depends on the specific plan you have and the type of service you receive.
For example, you might have a $20 copay for a doctor's visit. You'll have a copay for each appointment you have, and the amount may differ based on the type of doctor you see. A specialist may cost more than your family doctor.
Medicare Coinsurance
Medicare coinsurance is a percentage of the cost you have to pay for healthcare services. This amount may vary depending on the service and your plan.
For example, if you had a 15% coinsurance, that means you'll have to pay 20% of the cost of a medical service out of pocket. Medicare will cover the remaining 85%.
Contact a Medicare Insurance Professional
Understanding the basics of Medicare can be difficult, so it's important to talk to an insurance professional for help. A professional service — such as American Eagle Health Insurance — will be able to answer your questions and help you understand the different plans that you qualify for.
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